Perpetual Inventory Management

Full shelves mean full tills
Maintaining the optimal level of inventory at each site on a continual basis is critical for growing revenue, increasing customer satisfaction, and reducing operating costs. But an integrated approach to demand sensing, replenishment orders, merchandising plans and distribution flows has been lacking – until now.

Replenishment
Keeping shelves properly stocked is a natural outcome of sophisticated perpetual inventory management programs

Perpetual Inventory from RedPrairie provides an end-to-end integrated solution to ensure each store is always stocked with the right localized merchandise at the lowest possible cost for both retailers and suppliers.

It starts at the store
It all starts with demand signals from each store based on point of sale data. This demand data is combined with merchandising plans for promotions, seasonal trends and new product introductions to create localized product assortment forecasts. Sophisticated market basket analysis associates products typically purchased together to further refine the forecasts. Orders are then generated to distribution centers for the right replenishment mix and quantities.

Replenishment done right
At distribution centers, store orders are aggregated and compared with inventory and inbound shipments to allocate product for picking, cross-docking or merge-in-transit based on store distro rules. If product shortages are detected, item substitution and allocation from other DCs can fill the shortage, or work orders can be issued to manufacturing. Transportation plans are created to ensure least-cost delivery to stores at the scheduled time.

Based on electronic notification of inbound shipments, as well as promotion and merchandising plans, the system creates a staffing schedule for unloading the delivery, setting up displays, stocking shelves, and handling pricing and reset requirements. Associates can electronically receive inventory against electronic invoices using wireless handheld devices, implement cycle counts on targeted items, enforce best practices for inventory management, and automatically track, monitor, and reconcile inventory transfers between stores.

Thus, the perpetual inventory loop that began with in-store demand signals comes full circle through the supply chain back to the store with the right localized mix and quantities of goods properly stocked on shelves and displays. Suddenly, perpetual inventory is no longer a dream, it’s full shelves and full tills in your stores.